27. Gholson, Inc. employs a process costing system in which direct materials are added at the beginning of the process. Direct material costs from the prior period for beginning work in process are $1,250. The current period's direct material costs total $31,500. The company began the period with 500 units, 70% complete, started 10,500 units, and finished the period with 1,000 units, 40% complete Using a FIFO system, the direct material cost per equivalent unit is: a) $3.00 b) $2.98 c) $3.20 d) $2.55 Answer: a Difficulty: Easy Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPA: Management Accounting 28. Gholson, Inc. employs a process costing system in which direct materials are added at the beginning of the process. Direct material costs from the prior period for beginning work in process are $1,250. The current period's direct material costs total $31,500. The company began the period with 500 units, 70% complete, started 10,500 units, and finished the period with 1,000 units, 40% complete Using the weighted average method, the direct material cost per equivalent unit for the period is a) $3.00 b) $2.98 c) $3.20 d) $2.55 Answer: b Difficulty: Easy Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPA: Management Accounting 29. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of information about July's activities: On July 1: Beginning inventories-750 units, 60% complete the process. Here is 29. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories-750 units, 60% Direct materials cost $5,925 Conversion costs$4,095 During July: 15,000 units started Direct materials added $150,000 Conversion costs added $83,520 On July 31: Ending inventories 1,500 units, 40% Using the FIFO method, the number of units started and completed in July was: a) 14,250 b) 15,000 c) 13,500 d) 15,750 Answer: C Difficulty: Easy Learning Objective: Apply and compare FIFO and the weighted average methods in process costing CPA: Management Accounting 30. Hendrix, Inc. employs a process costing system. Direct materials are added at the beginning of information about July's activities: On July 1: Beginning inventories-750 units, 60% the process. Here is Direct materials cost $5,925 Conversion costs $4,095 During July 15,000 units started Direct materials added $150,000 Conversion costs added $83,520 On July 31: Ending inventories-1,500 units, 40% Using the FIFO method, the number of equivalent units of conversion costs was: a) 14,400 b) 14,550 c) 14,850 d) 14,700